Asia to bring 103GW RE capacity additions in 2022

Of this, 64GW will come from China.

Asia is expected to account for 103 gigawatts (GW), or 46% of the total new capacity in renewable energy this year, Rystad Energy reported.

Of this, China will account for 64GW, or 62% and 29% of total capacity gains in Asia and globally, respectively.

This is despite China’s move to phase out national subsidies for onshore wind and solar photovoltaic in the beginning of the year, the research firm noted.

At present, the country is also the leading developer of offshore wind with over 14GW of additional capacity seen last year and 11.5GW estimated in 2022.

It is also seen as the largest contributor to new capacity in 2022 with 40% of additions expected, followed by Europe, which will add over 3GW of capacity.

Globally, the new utility scale renewables capacity is expected to break record in 2022 as it is projected to reach an all-time high of 220GW as investments are estimated at over $300b for solar and wind power.

Of this, 195GW are already underway, whilst the remaining 12% are still in various stages of development. Solar will account for 46% of the total capacity already under construction, whilst wind accounts for 34%.

Rystad Energy noted that almost 50% of the capacity under construction are in Asia, particularly China and India.

“Despite record capacity additions in 2022, the outlook is not all positive. Projects expected to start construction this year will face challenging economics, delays and even cancellation risks,” Gero Farruggio, head of renewables research with Rystad Energy, said.

He noted the first sign of this challenge is seen in the projected fall in large-scale renewable capacity breaking ground in 2022 against 2021.

A decrease in project start-ups is also expected in 2022 due to rising steel prices that have constrained onshore wind projects, as the cost of steel accounts for almost 70% of the final price of wind installations.

In terms of storage, battery installations are estimated to reach 24.6GW by end-2022, reflecting a 96% year-on-year increase.

Rystad Energy added forecasts show that battery capacity will rise to 52.4GW by 2025, which is four times higher than its current levels.

“Whilst all regions in the world are waking up to the benefits of battery storage, nowhere is this more apparent than in the US, where 53% of the world’s battery capacity will be located by 2025, totaling 28GW,” the report read in part.